Canadian Dollar Pulls Back a Bit After Housing Starts Data

The latest housing starts data was a bit disappointing, and the result offset some of the better news out of Canada about building permits. Concerns about the housing market continue to weigh, and the continued pressure on oil prices isn’t helping the loonie, either.

Loonie is a little bit lower against many of its counterparts today, thanks to the latest housing data. While the losses are quite tiny, they are still there, and a lot of it has to do with the fact that housing starts came in below expectations.
The disappointment in housing starts couldn’t quite be overcome by the reports from Statistics Canada that building permit growth beat expectations. There are a lot of jitters in the market right now, and that makes it difficult for the loonie to gain the upper hand.
Canadian dollar is also under pressure from oil prices. Once again, oil prices are lower today. Loonie is a commodity currency connected to oil, and dropping prices don’t do much to provide support. Other jitters are resulting from the upcoming Scottish independence vote.
At 10:16 GMT USD/CAD is up to 1.0988 from the open at 1.0937. EUR/CAD is also higher, gaining to 1.4196 from the open at 1.4128. GBP/CAD is up to 1.7843 from the open at 1.7730.

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